In a new scheme to help the poor, savers may be offered tax-free individual savings accounts (ISAs) as a result of proposals to allow private investments in social projects.
A report published on Monday and commissioned by David Cameron has suggested involving companies, funds and individuals in supporting schemes that keep children away from crime, drug and alcohol abuse. The report tabled by Graham Allen, Labour MP for Nottingham North, argues that early intervention will saves billions of pounds and far more effective than repairing damage late in life and profits will come from lower cost of tackling crime and benefits claim. People with behavioural problems left untreated as children cost £70,000 each to taxpayers, 10 times more than normal children, when they reach 28 years of age.
One proposal is offering an £200 increase in the tax-free savings limit to the 20 million people with ISA accounts with an innovative early intervention ISA.
The proposed Junior ISA encourages families to build up savings for when a child reaches the age of 18, could also be invested in the projects.
The report has proposed payments to voluntary and private groups based on results, when they fund projects commissioned by local authorities or the government.
The government has been proposed to co-fund an Early Intervention Foundation that will encourage investment in ‘early intervention funds’ to attract funds from investors, including wealthy individuals and will also promote the philosophy.